New Delhi, June 2 -- Bank loans sanctioned to India's micro, small, and medium enterprises (MSMEs) under the Prime Minister's Employment Generation Programme (PMEGP) dipped by nearly a third to Rs.12,315 crore in FY25, from Rs.17,759 crore in FY24.

The development assumes significance since MSMEs contribute around 29% to India's GDP. This comes in the backdrop of the government reworking its revival framework for MSMEs to ensure continuity of bank credit during their stress period.

Launched in 2008 by merging Prime Minister's Rojgar Yojana and Rural Employment Generation Programme, PMEGP is a flagship credit-linked subsidy scheme of the government.

Bank loans sanctioned to MSMEs increased in FY22 in the wake of the covid-19 pandemic, a...